Apple (AAPL.US) shares hit a new high as analysts expect its market value to reach $4 trillion next year

Apple Inc. (AAPL.US) shares closed at a record high on Tuesday despite a temporary slowdown in the broader market, with the tech giant's stock continuing to perform strongly. Apple's shares rose 1.28% to close at $242.65 on Tuesday, hitting a record high of $242.76 during the day, according to Dow Jones Market Data. This was the sixth consecutive day of gains and the ninth most actively traded stock in the S&P 500 on Tuesday. Despite reports last week that Apple's iPhone sales in 2024 lagged behind competitors and that consumers were lukewarm on its new artificial intelligence features, Apple's stock continued to climb. Meanwhile, Meta Platforms (META.US) also hit a new high on Tuesday, rising 3.51% to close at $613.65. The S&P 500 closed up less than 0.1% on Tuesday at 6,049.88, a new record high. The index has risen more than 26.8% so far this year, while Apple's shares have gained 25% this year. The Nasdaq, which has a higher weighting of tech stocks, closed up 0.4% on Tuesday at 19,480.91, also a record high, up 29.8% so far this year. Apple's strong performance is no doubt due to its status as a member of the "Magnificent Seven," a group of major tech companies that have been a major driver of this year's market rally. Apple is now the world's most valuable company, with a market capitalization of $3.64 trillion. Dan Ives, senior stock analyst and global technology research head at Wedbush Securities, believes that despite skepticism, Apple's prospects are more optimistic than many expect. "Ives said in an interview: "Wall Street is starting to realize that iPhone 16 will kick off a super cycle, and strong sales in China have put the bears into hibernation." Ives rates Apple's stock "outperform" and sets a target price of $300. He expects iPhone 16 sales to drive a super upgrade cycle powered by artificial intelligence, breaking iPhone annual sales records, attracting more than 90 million users to upgrade their devices, and helping Apple reach a market capitalization of $4 trillion in 2025."